The Hermiston City Council on Monday approved what the city manager called “the most unique” budget he’s ever presented to the city.
One of the ways the 2023-24 budget is unique is that it is about 47 percent bigger than the 2022-23 fiscal year budget. The 2023-24 fiscal year budget is $97,034,368 – a total of $30.9 million more than the previous fiscal year budget.
Much of that increase is due to several capital investments the city is making this year. The lion’s share of that increase comes from a city project designed to bring cooling water to Amazon that will cost $20 million.
Hermiston City Manager Byron Smith said, however, that while the project is being designed and paid for by the city, the $20 million will eventually be reimbursed by Amazon.
“We want it built to our specs and Amazon agreed to reimburse us for the cost,” said Smith.
Another project adding to the 2023-24 budget is the completion of the N. First Place project which involves rebuilding the road from W. Hermiston Avenue north to W. Elm Avenue. A total of $2 million is budgeted for the project’s completion. Other aspects of the project include:
- Strengthening secondary north/south arterial west of railroad tracks
- Rebuilding existing roadway and turn lanes
- Installing curbs, gutters and sidewalks to meet ADA standards
- Developing drainage and delineates parking while creating formal driveways
- Coordinating work with water and wastewater departments, as well as outside utilities
The project began last year and is expected to be completed in October.
The city also included $1.27 million for the addition of a new IT department. The city has been providing IT services to several cities for the past couple of years. The department has six employees, and the budget includes money for a seventh IT employee.
Smith said the size of the budget stems from having multiple projects that “all came together at the same period.” He expects next year’s budget to be closer to what it has been in previous years.
The city is also looking to hire three new police officers, although there is not money in the budget to do so. Smith, however, said the city is applying for a grant to fund the new officers.
The city also had to find a way to close a $2 million shortfall in the 2023-24 budget. To accomplish that, the city will make a short-term interfund loan from the Utility Fund ($1.36 million) and the Hermiston Electric Fund ($673,000) to cover the shortfall.
